JPY, and to a lesser extent USD, weaker during Asian session

The JPY, and to a lesser extent USD, have seen some weakness during the Asian session. USD/JPY is up at 96.25 from a North American close Wednesdy around 95.55, while EUR/JPY is up at 134.35 from around 133.15.

Improved risk sentiment is helping undermine both currencies, with Asian stockmarkets making very respectable gains overnight. The very strong US durable goods release yesterday; the Fed observing that the pace of economic decline is slowing; and South Korean Finance Minstry upgrading 2009 growth forecast to -1.5% from previous -2% are some of the factors helping whet risk appetite.

A couple of other factors are helping undermine the JPY, namely speculation the BOJ could join the SNB and sell their own currency.

The other, as mentioned yesterday, is talk Japanese investors will be spending their half yearly bonuses on higher yielding foreign assets. This scenario is given credence by government data showing Japanese investors bought yen 336.1 bln more foreign assets than they sold in the week to June 20.